White House Announces Deal to Lower Drug Costs

On September 30, 2025, the White House announced a deal with Pfizer to lower drug costs in line with most-favored nation (MFN) pricing. 

Background
On May 12, 2025, President Trump signed an Executive Order on most-favored-nation pricing. 

On July 31, 2025, the White House sent letters to 17 pharmaceutical manufacturers outlining the Administration's expectations for drugmakers' compliance with a most-favored-nation drug pricing policy:

• Extend MFN pricing to Medicaid 
• Guarantee MFN pricing for newly-launched drugs 
• Return increased revenues abroad to American patients and taxpayers 
• Provide for direct purchasing at MFN pricing

Agreement with Pfizer
While specific terms of the agreement have not been disclosed, both Pfizer and the White House issued statements providing a broad outline of the agreement. 

Under the agreement, Pfizer will:

• implement measures to provide drug prices comparable to those in other developed countries; 
• launch new medicines with prices at parity with other key developed markets; and
• participate in TrumpRx.gov, a new website to allow direct purchasing of drugs at significant discounts.

The Trump administration agreed to give Pfizer a three-year grace period on tariffs, contingent on increased U.S. manufacturing investment. 

Other Manufacturers
There are ongoing negotiations with other drug companies and further announcements are expected throughout the fall.

More on This Topic:

• Executive Order - DELIVERING MOST-FAVORED-NATION PRESCRIPTION DRUG PRICING TO AMERICAN PATIENTS
• Letters to Pharmaceutical Manufacturers
• Fact Sheet
• Press Release

For questions, please reach out to Vicky Jucelin.